In accordance with the provisions of FEMA, 1999, the Directorate of Enforcement (ED) conducted search and seizure operations on May 22 and May 23 at 25 locations in Delhi (11), Gujarat (07), Maharashtra (4), Madhya Pradesh (2), and Andhra Pradesh (1) in connection with an investigation being conducted against foreign registered online gaming companies and websites operating in India.
These online gambling businesses and websites are licenced to operate in Curacao, Malta, and Cyprus, three small island nations. However, they are all connected to Indian Bank Accounts that were set up in the names of proxies who had no connection to Internet gambling.
The money that has been obtained from the general public through gaming websites is then transferred through several different bank accounts before being sent outside of India on the false pretence that it is being used to pay for the import of products or services. Remittances from racing, horseback riding, or any other hobby income are not permitted under the terms of FEMA, 1999.
Searches were carried out in this regard at locations connected to a number of Hawala operators, including those of Ashish Kakkar, Neeraj Bedi, Arjun Ashwinbhai Adhikari, Abhijeet Khot, and the people/entities linked to them. Several damning papers and technological evidence relevant to the case have been found during searches, and this has led to the revelation of an intriguing strategy used by the suspects to elude law enforcement.
In order to layer and transmit remittances of around Rs. 4000 Crore under the pretence of payments for the import of goods and services, key individuals formed hundreds of firms in the names of their workers. Additionally discovered and confiscated were a number of PAN cards, Aadhar cards needed to open such corporations, mobile devices used to manage bank accounts for these organisations, and official stamps.
Important individuals were discovered utilising international virtual mobile numbers for messaging services like WhatsApp, Telegram, Signal, etc., as well as assuming aliases like Pablo, John, and Watson to conceal their true identities. They employ remote-based servers and laptops that can be accessed via programmes like Anydesk, Team Viewer, and others to hide from investigative agencies. In the current instance, two of these remotely accessible laptops were also found and confiscated on the property of a company offering server services, which was located far from the real working locations.
During searches, authorities seized 55 bank accounts used by companies to layer and remit income from online gaming under the guise of remittances, US$2695, and incriminating documents and electronic devices proving thousands of crores in foreign outward remittances collected from the public through gaming websites using accounts of dummy firms opened in the name of proxy persons who are not connected with the gaming activities. Further research is now being conducted.
